Pre-approval vs pre-qualification

Skip pre-qualification and go straight to pre-approval if you're serious about buying. Pre-qualification is only useful if you're 3-6 months away from buying and want a rough estimate. But if you're ready to tour homes in Las Vegas, Henderson, or Reno, you need pre-approval. Nevada's real estate market is competitive, and sellers expect verified financing before considering offers. Many listing agents won't even schedule showings without a pre-approval letter.

Pre-approval requires a hard credit inquiry, which may temporarily lower your score by 3-5 points. However, this impact is minor and short-lived (usually disappears within a few months). The benefit of getting pre-approved far outweighs this small, temporary dip. Additionally, if you shop with multiple lenders within a 14-45 day window, all inquiries count as a single pull for scoring purposes, so you can rate-shop without additional credit impact.

Most pre-approval letters are valid for 60-90 days. After that period, lenders typically require updated documentation (pay stubs, bank statements) and may pull your credit again to ensure your financial situation hasn't changed. If you haven't found a home by the expiration date, contact your lender to refresh your pre-approval. The process is usually faster the second time since they already have most of your information on file.

Yes, you can still get pre-approved with lower credit scores through government-backed loans like FHA (minimum 580 for 3.5% down, 500 for 10% down) or VA loans for veterans (no minimum, though 620+ is typical). Conventional loans usually require 620+. Even with challenged credit, getting pre-approved shows sellers you're committed and have been vetted by a lender. We specialize in helping Nevada buyers with various credit situations find the right loan program.

You'll need: (1) Last 2 years of W-2s and tax returns, (2) Last 30 days of pay stubs, (3) Last 2-3 months of bank statements for all accounts, (4) Government-issued ID (driver's license), (5) Proof of any other income (rental, alimony, etc.), (6) Recent mortgage or rent payment history. Self-employed borrowers need additional documentation like profit & loss statements and business tax returns. We'll guide you through exactly what's needed when you apply.

Pre-approval is a strong commitment, but not a final guarantee. Final loan approval depends on: the home appraising for the purchase price, the property meeting lender standards, no major changes to your finances (don't quit your job or take on new debt), and satisfactory title search and underwriting. As long as nothing changes between pre-approval and closing, and the property is acceptable, you should be approved. Pre-approval gives you about 95% certainty of getting the loan.